When personal bankruptcy attorneys are retained, their responsibility includes informing the client of the law, drafting the Petition and Schedules, filing the documents with the Court, and attending the Creditor’s Meeting, or §341 Meeting. In a recent case handed down by the United States Bankruptcy Court, a Boston attorney failed to appear at the Creditor’s Meeting for five different clients.
Read MoreThe numbers for the first half of the year are in and our Massachusetts personal bankruptcy clients will understand: chapter 7 personal bankruptcies are up 17.6% over that period. Chapter 13 reorganizations are up 62%! While these numbers are grim, the good news is that bankruptcies tend to be a lagging economic indicator; they rise after a great fall in income and following the worst part of recessions.
Read MoreA client called us the other day and reported that now that he was 18 months post bankruptcy, his FICO credit score was 640, he was getting better and better rates on his credit cards, and that he was “overjoyed” at how “easy this was” once he was given the relief that the “fresh start” the law promises. Apparently he has been following the simple rules that improve credit scores.
Read MoreWith the end of the second quarter imminent, Massachusetts consumers continue to file personal bankruptcy at a rate higher than the national average. The rate for this quarter will not be known for a while, but the numbers for the first quarter, 272,048 Chapter Seven filings, and 373,551 total filings. Those numbers indicate that over 72% of the filings are Chapter Seven.
Read MoreOur personal bankruptcy clients in Boston seem more confident of their ability to get a “fresh start.” However,
Read MoreIn a case where the bankruptcy debtor omitted assets and income on her federal bankruptcy petition, the United Bankruptcy Court revoked the discharge. We advise our clients that dishonesty is one of the biggest reasons for failures to secure discharge, problems and additional costs and attorney fees in Chapter 7 personal bankruptcy.
Read MoreAll of us in Massachusetts know that the Celtics will win tonight, capturing the Eastern Conference finals. However, on another basketball front, reports indicate that former basketball star Antoine Walker filed for personal bankruptcy protection in Florida. Walker’s debt, listed at over $12 million, seems extensive, and there seems to be a paucity of income.
Read MoreIn seeking bankruptcy protection for Massachusetts clients, personal bankruptcy lawyers often use the local Massachusetts bankruptcy exemptions to enable clients to keep their homes. That exemption is $500,000 of equity. However, many folks put their homes in trusts.
Read MoreIn a well written decision by former Supreme Court Justice, David Souter, sitting by designation on the First Circuit Court of Appeals in Boston, Massachusetts, the Court held that Alexander Sherman, who filed bankruptcy after bilking investors out of $983,000, met the test for embezzlement and that therefore the debt to the victims could not be discharged.
Read MoreIn a national study by economists the conclusion was reached that the recent mortgage crisis was partially a result of the changes in the federal bankruptcy laws, made effective in October 2005. To those of us practicing personal bankruptcy law in Massachusetts, this seems like a simplified conclusion based on assumptions.
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